HomeContributorsTechnical AnalysisUSD/CAD Plummets Due To Fundamentals

USD/CAD Plummets Due To Fundamentals

During Wednesday’s afternoon, US Final GDP, Consumer Confidence and Building Starts data showed contradicting information, which was represented by a wide hourly candle. The rate bounced between the borders of the minor scale channel down pattern until the pattern’s support broke.

The event was followed by a sharp decline to the support levels at 1.2835/1.2850. However, on Thursday morning, the support levels failed, and by mid-day the rate was approaching the December 16 and 17 high level zone near 1.2810.

If the USD/CAD declines below the 1.2810 level, the 1.2800 mark might immediately provide support. Below the 1.2800 mark, the December 16 low level at 1.2765 might act as support.

Meanwhile, a recovery of the rate would most likely find resistance in the 1.2835/1.2850 zone.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

Featured Analysis

Learn Forex Trading